Sometimes, when you elect an unskilled community organizer to the White House, these things happen.
Another Obama record – US Treasuries at 1.45pc.
US Treasuries were at 4pc. in 2008.
US Treasuries fell to 1.45pc recently, lower than at any time during the Great Depression.
The Telegraph reported:
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The window of opportunity offered by US recovery is slamming shut again. America’s dire jobs data for May – and the downward revision for April – confirm the fears of cycle specialists that the US economy has slipped below stall speed. America risks tanking back into recession as the “fiscal cliff” approaches late this year, unless the Fed comes to the rescue again soon.
Brazil wilted in the first quarter. India grew at the slowest pace in nine years. China’s HSBC manufacturing index fell further into contraction in May, with new orders dropping sharply and inventories rising.
We face the grim possibility that all key engines of the global system will sputter together, this time with interest rates already near zero in the West and average public debt in the OECD club already at a record 106pc of GDP.
“The world’s largest emerging economies are no longer in a position to carry the global economy through tough times, as they did during the ‘recovery’ years of 2009-2011,” said China expert Andy Xie.
The warnings from the bond markets could hardly be clearer. German 10-year Bund yields closed at 1.17pc. The two-year notes turned negative. British Gilts closed at 1.53pc, the lowest in 300 years. US Treasuries fell to 1.45pc, lower than at any time during the Great Depression.
George Soros gave the Euro-zone governments three months to ensure the survival of the single currency in a speech on Saturday.